Correlation Between United States and Golden Minerals
Can any of the company-specific risk be diversified away by investing in both United States and Golden Minerals at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining United States and Golden Minerals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United States Antimony and Golden Minerals, you can compare the effects of market volatilities on United States and Golden Minerals and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in United States with a short position of Golden Minerals. Check out your portfolio center. Please also check ongoing floating volatility patterns of United States and Golden Minerals.
Diversification Opportunities for United States and Golden Minerals
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between United and Golden is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding United States Antimony and Golden Minerals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Minerals and United States is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on United States Antimony are associated (or correlated) with Golden Minerals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Minerals has no effect on the direction of United States i.e., United States and Golden Minerals go up and down completely randomly.
Pair Corralation between United States and Golden Minerals
Given the investment horizon of 90 days United States Antimony is expected to generate 1.12 times more return on investment than Golden Minerals. However, United States is 1.12 times more volatile than Golden Minerals. It trades about 0.13 of its potential returns per unit of risk. Golden Minerals is currently generating about -0.05 per unit of risk. If you would invest 33.00 in United States Antimony on September 3, 2024 and sell it today you would earn a total of 38.00 from holding United States Antimony or generate 115.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
United States Antimony vs. Golden Minerals
Performance |
| Timeline |
| United States Antimony |
| Golden Minerals |
United States and Golden Minerals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United States and Golden Minerals
The main advantage of trading using opposite United States and Golden Minerals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United States position performs unexpectedly, Golden Minerals can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Golden Minerals will offset losses from the drop in Golden Minerals' long position.| United States vs. Syrah Resources Limited | United States vs. Nouveau Monde Graphite | United States vs. Trilogy Metals | United States vs. Global Atomic Corp |
| Golden Minerals vs. Summa Silver Corp | Golden Minerals vs. GoGold Resources | Golden Minerals vs. Scottie Resources Corp | Golden Minerals vs. Brixton Metals |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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